Financial Review: Sangoma Technologies (NASDAQ:SANG) & Audioeye (NASDAQ:AEYE)

Sangoma Technologies (NASDAQ:SANGGet Free Report) and Audioeye (NASDAQ:AEYEGet Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Profitability

This table compares Sangoma Technologies and Audioeye’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sangoma Technologies -2.39% -1.74% -1.25%
Audioeye -8.88% 40.94% 9.77%

Analyst Recommendations

This is a summary of current ratings for Sangoma Technologies and Audioeye, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sangoma Technologies 1 0 1 1 2.67
Audioeye 1 0 3 0 2.50

Sangoma Technologies presently has a consensus target price of $11.00, suggesting a potential upside of 116.96%. Audioeye has a consensus target price of $22.00, suggesting a potential upside of 120.22%. Given Audioeye’s higher possible upside, analysts clearly believe Audioeye is more favorable than Sangoma Technologies.

Volatility & Risk

Sangoma Technologies has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Audioeye has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

39.7% of Sangoma Technologies shares are held by institutional investors. Comparatively, 51.1% of Audioeye shares are held by institutional investors. 14.0% of Sangoma Technologies shares are held by company insiders. Comparatively, 28.8% of Audioeye shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sangoma Technologies and Audioeye”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sangoma Technologies $236.69 million 0.71 -$5.01 million ($0.16) -31.69
Audioeye $35.20 million 3.52 -$4.25 million ($0.28) -35.68

Audioeye has lower revenue, but higher earnings than Sangoma Technologies. Audioeye is trading at a lower price-to-earnings ratio than Sangoma Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Audioeye beats Sangoma Technologies on 8 of the 15 factors compared between the two stocks.

About Sangoma Technologies

(Get Free Report)

Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The company offers Switchvox, a voice over internet protocol phone system; Switchvox Cloud, a unified communications solution, as well as provides cloud communication solutions. It offers SIP Trunking, a telephone service for one or multiple locations; PBXact Cloud, a centralized internet based solution; Asterisk and FreePBX, an open source IP PBX software; and FAXStation, a fax-over-IP solution. In addition, the company provides desk phone, DECT phones, and headset related products. Further, it offers VoIP gateways, session border controllers, telephony card, and managed service provider services. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.

About Audioeye

(Get Free Report)

AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.

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